BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Power Grid Investment Trust is a good option for yield investors who can expect a 11-12% yield arising from stable cash flows.
The valuations indicate a price to book of 3.5 times, as compared to Power Grid Corporation of India Ltd. price-to-book of 1.6 times.
However, the InVIT has superior 20% plus return on equities compared to the average return on equity of 15% for Power Grid.
From a Powergrid perspective, the higher price-to-book of the InVIT which translates into a higher book, would mean an addition of approximately Rs 7 to its fair value.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.